UK ETS
Similar as EU ETS, only includes UK-UK and UK-Ext. journeys. For the scheme year 2022/2023 this price will be £62.10/tCO2.
Organization UK Government
Area UK
Effective Date 2023
Keywords Tax, CO2
Price for one tonne CO2 will be 62.10 pound
Under the proposals, only UK domestic shipping would be covered by the UK ETS. International shipping would not fall under the scheme, with the consultation stating that the UK Government fully supports the work of the IMO to tackle global shipping emissions. The UK ETS will be similar to the EU ETS but will have a different price, for the scheme year 2022/2023 this price will be £62.10/tCO2. Fuels with higher carbon intensity like HFO, MDO are taxed heavier, because of their higher CO2 emissions.
Impact for you
Cost impact is significant.
Time impact is low after administration is set up.
About UK ETS
Key legal requirements under the UK MRV regime
Ships over 5,000 gross tonnes, transporting cargo and/or passengers for commercial purposes to and from UK ports, between UK ports or within UK ports (including while at berth), are subject to the UK MRV regime.
The same exceptions apply to vessels under the UK MRV regime (e.g. for warships), that apply under the EU MRV regime [footnote 1].
Ship operators must have in place an assessed monitoring plan before data collection begins [footnote 2].
The assessment of the monitoring plan and the verification of the annual emission report for each ship needs to be done by an accredited verifier. The verifier must be accredited by the United Kingdom Accreditation Service (UKAS).
Each ship must have its emissions monitored and its data collected for each reporting period, ready for verification.
By 30 April following each reporting period, a verified emissions report must be submitted to the UK Administration covering the previous reporting period.
By 30 June following each reporting period, a valid Document of Compliance (DoC) must be carried on board each vessel covering the previous reporting period [footnote 3].
A DoC issued under the EU MRV regime and which covers voyages between the UK and European Economic Area (EEA) ports [footnote 4] is recognised as a UK DoC equivalent for those voyages only.
There are requirements on the Administration to make MRV data available and report annually on the findings.
Frequently Asked Questions
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References
UK Government- Developing the UK emissions trading scheme UK ETS
HFW Consulting - Inclusion of domestic shipping in the UK ETS